What lifestyle would live someone who is guaranteed to get $1.2M/yr.?

I have no problem living Japanese.

It is a lot more fun to experience life. As long as you have a nice bed, TV,computer and food/water.

You can just travel and enjoy life.
 
This turned into a hotel living thread.

I'll provide alternative reply.

With 1.2M a year of bond income, (so you need a net worth of about 20m to get to this point on a risk free basis) I'd probably enter into liabilities to match - the logic being if the US govt defaults on its debt, perhaps I can justify defaulting on mine (while appreciating the amenities [cars, houses, etc] in between). If you take 30% of your income, you can afford about 25k/month of a mortgage. Maybe 50%+ is justifiable at such an income level. But then your home becomes a museum. Life isn't much different than being poor and visiting a museum 10 hrs a day. Yes, better sleeping arrangements ... Maybe accumulate some gold and inflation resilient assets to throw in different safes in various places throughout the world. (just to protect in case the bond income doesn't work out)


but this becomes a 'trappings of wealth' problem --- one can live a pretty great lifestyle on 10k/month (by anyone but the top .1%'s standards), so do we want to define our consumption based on our income ? It would be difficult to spend 100k/month unless you chose to subsidize your local luxury retailers and restauranteers on a constant basis (or just purposely wasted $$$ on buying/renting vacant property space).

With that said, the burden of such a life would be finding a compelling enough mission to keep you going. Here I have no doubt unless you are actively doing something positive for society, that this sort of wealth would have negative utility effects. There's a reason philanthropy is so popular --- it alleviates this problem.

I bet every finance guy who's seen Brewster's Millions has figured out how to spend unlimited $$$ in record speed....
 
1.2 mill a year?

I'd pay cash for a house out in the country, and gut it out, and start my own indoor grow operation :D . But don't tell anyone because its super super secret.

Have any idea on the profit margins?.. 630lbs = about 500k tax free income, of course its not legal tho.
 
Well, I would get myself a nice house build, with a decent garage for a number of sports cars and would spend one or two weeks every month travelling. Maybe go on a cruise.

But I definitely would want to have my home base where I can actually work and gather energy between travels ;)
 
You will find that most "stuff" becomes junk in time. For example, the original Betmax cost about 3-4 grand...the 80286 computer cost about 2 grand back in the 80s. It all became junk...High-end cars like Lexus, Porsche, etc. too all become junk in time. I have never seen a 3-4+ year old Mercedes without a trouble light on the dash or something wrong with it. In the autotrader, used old high-end cars seem to command the same prices as used old Japanese cars. So material things become junk over time.

When you get older, you simply don't care about the same things you used to care about. For example, what you are driving. At a certain point, it really doesnt matter anymore so long as its clean, it runs and is reliable. I am happy with a V6 RAV4...dont need much more then that where as maybe 20 years ago I was into BMWs and would have never considered a Toyota.

Big houses...big properties...mean more maintenance and more worries. Even if you hire people to do the maintenance, its still time consuming and a hassle.

Life experiences and good quality social relationships is the key to living a good life. Use the money to improve your social relationships...use the money to increase your life experiences...

I really believe traveling to different destinations across the world is the way to go and its not expensive to live nicely in a place like Colombia or Brazil. Its also simply a lot more fun, no matter your age, to live in a foreign country then it is the United States.
 
Quote from retaildaytrader:

You will find that most "stuff" becomes junk in time. For example, the original Betmax cost about 3-4 grand...
............................................................................
I really believe traveling to different destinations across the world is the way to go and its not expensive to live nicely in a place like Colombia or Brazil. Its also simply a lot more fun, no matter your age, to live in a foreign country then it is the United States.
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Excellent post ... excellent
 
Quote from retaildaytrader:

I have never seen a 3-4+ year old Mercedes without a trouble light on the dash or something wrong with it. In the autotrader, used old high-end cars seem to command the same prices as used old Japanese cars. So material things become junk over time.

When you get older, you simply don't care about the same things you used to care about. For example, what you are driving. At a certain point, it really doesnt matter anymore so long as its clean, it runs and is reliable. I am happy with a V6 RAV4...dont need much more then that where as maybe 20 years ago I was into BMWs and would have never considered a Toyota.

More...

i have one-5 years old. runs just fine. no lights or anything. maybe it's because i do the maintenance by myself?
quality of the ride of BMW 20 years ago is pretty much same as your current toyota. imo -the difference between current MB and RAV4 is huge. but i agree with you on material junk.it's all just waste of money... but for some reason i'm physically enjoying driving
MB. i can just drive it around town and it's make me feel happy. sometimes i do that after big loss day. similar,but different feelings when i'm riding on motorcycle..can't say same with my old nissan :p
 
I have a good example...50 years ago a rich man's stuff right now is somewhere buried in a landfill or sitting in a basement somewhere in some dust. All the stuff that the rich man used, maybe except for some precious jewelery, is now obsolete. The cars he used are now crushed.

The only thing that is left is the legacy he left behind...if he left any legacy behind. There are quite a few good ways to leave a legacy behind. Donating money to a "charity" is probably one of the worst ways to do it. There is no way you know the money is truly being used for good or being used as efficiently as possible. Usually during these catastrophes you see many news articles of how different charities really spent your money and entitlements/handouts never developed anyone. Handing someone something for free does not truly develop the person.

The best way is to simply develop close personal relationships with the people around you and encourage them forward to do their best.
 
great post retaildaytrader! i do have couple good stories about what just mentioned above, but they are too long and with my english not going to sounds good anyway. but i totally agree with you
 
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